South Korea’s fair trade regulator has approved voluntary corrective measures worth 3 billion won ($1.94 million) proposed by Coupang and its private-label subsidiary Coupang Private Label Brands following an investigation into unfair dealings with subcontractors.
The approval from the Fair Trade Commission allows the companies to resolve the case through a consent decree rather than continue with legal proceedings. The watchdog found that since 2022, the companies had provided 314 subcontractors with contracts that lacked legally required information and reduced supply prices for 94 subcontractors through discount promotions that were not included in their agreements.
In response, Coupang and CPLB submitted a corrective plan in March last year focused on supporting subcontractors and promoting shared growth. The total value of the package reaches 3 billion won, significantly higher than the estimated fines of 600 million won to 1.1 billion won that could have been imposed.
Under the plan, Coupang will allocate 1.05 billion won to help subcontractors cover product development, manufacturing, and logistics costs. Another 1 billion won will be used to promote private-label products through the company’s website and mobile app.
The package also includes 450 million won to support subcontractors participating in offline exhibitions and promotional events. An additional 400 million won will fund consulting services and overseas market expansion efforts.
Coupang has also committed to holding regular meetings with subcontractors to discuss product quality improvements and workplace safety initiatives.
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The decision comes just days after the FTC rejected a separate 60 billion won corrective proposal from Coupang in another case involving allegations that the company abused its market position in dealings with restaurant owners and consumers. Industry observers said the regulator likely rejected that proposal because the alleged violations affected a much larger number of merchants and customers.
